Role of special economic zones in improving effectiveness of gms. Special economic zones sezs geographically delimited areas within which governments facilitate industrial activity through fiscal and regulatory incentives and infrastructure support are widely used across most developing and many developed economies. Special economic zones sezs can be regarded as an investment in industrial infrastructure and a services provider to attract and facilitate foreign investment, integrate local firms into global value chains, promote exportoriented growth and generate employment. Progress, emerging challenges, and future directions. A proposal for a study on the role of sezs in strengthening competitiveness of gms economic corridors was endorsed at the february 2016 gms senior officials meeting. Industrialization is expected to be an important catalyst in increas. Sustainable development in the islamic republic of iran. May 2018 a special economic zone sez is an area in which the business and trade laws are different from the rest of the country. There are currently 295 industrial parks, 3 technology parks and 15 economic zones, which concentrate over 50% of total fdi. The role and effectiveness of special economic zones in.
Special economic zones sezs chinapakistan economic. Special economic zones are intended to facilitate fast economic growth. Although the performance of many zones remains below expectations, failing either to. A special economic zone is an area in a country that is subject to unique economic regulations that differ from other regions of the same country.
Special economic zones are regarded as geographically delimited area which is physically secured ganne, 2009. The role of special economic zones in improving e ectiveness of greater mekong subregion economic corridors this study looks into the role of special economic zones in strengthening the competitiveness of economic corridors in the greater mekong subregion gms. The role of special economic zones asian development bank. We prepare and provide answer sheets, assignment solutions, project reports and thesis. The function of special economic zones in the modernization process of china.
Jamaica special economic zones authority facilitating. This allows sezs to utilize economic management which is more attractive to foreign and domestic businesses. Special economic zones are intended to function as zones of rapid economic growth by using tax and business incentives to attract foreign investment and. T his chapter examines the role of special economic zones across subsaharan africa in promoting employment growth, raising productivity and generating spill. Can special economic zones promote inclusive growth. The special economic zones act, 2005, was passed by parliament in may, 2005 which received presidential assent on the 23rd of june, 2005. Since 1979, chinas special economic zones sez have been beckoning foreign investors to do business in china.
The role of special economic zones in improving effectiveness of. Special economic zones are intended to function as zones of rapid economic growth by using tax and business. Tanzanias objective is to become a middle income, semiindustrialized nation by 2025. The role of the special economic zones must be further enhanced alongside our desire to put an end to the massive poverty that has long plagued our society. Free zones have become the center of activity in modern economy. Efforts to create sezs in tanzania began in 2002, and were stepped up through the establishment of the export processing zone authority epza.
Whats so special about the special economic zones act. Pdf special economic zones sezs concept has evolved across the globe and several developing countries have adopted this policy for. More and more countries have begun to implement this. The role and effectiveness of stateowned export processing zones epz and special economic zones sez in tanzania is examined in this paper. In india, they are called special economic zones sezs. Pdf role of special economic zone sezs in creation of. Reviewing applications and granting licenses to sez developers, operators and enterprises.
A special economic zone sez is a geographical region that has laws and regulations that are more liberal or flexible than a countrys domestic economic and investment laws. Generally, sez aims to enhance the prosperity of the country. Special economic zones as noted, the purpose of the law on special economic zones law on sez is to promote economic development in certain regions that are considered underdeveloped by increasing and attracting investments, productivity, competition, and jobs. Chinas special economic zones sez are areas in which foreign and domestic companies can trade and invest without the same control and regulations from beijing as other parts of china.
Eradicating poverty by accelerating economic growth and generating employment opportunities through industrialisation is a key policy priority for bangladesh. Free trade zones, export processing zones, special economic zones, specialized zones economic zones. The role and effectiveness of special economic zones in tanzania special economic zones sezs have been successfully used as an industrial policy tool in many countries. Until now, the special economic zone has been located in more than 5 countries around the world. Created after deng xiaopings economic reforms were implemented in china in 1979, special economic zones are areas where marketdriven capitalist policies are implemented to entice foreign businesses to invest in china. Chapter 4 chinas investment in special economic zones in africa 69. We just have to address the objective improvements being suggested in order to clearly rationalize the incentives for the business enterprises that operate in these areas. The role and effectiveness of special economic zones. Hanoi viet nam newsasia news network although being late and facing many challenges, vietnam must dare to play and bet on the success of special economic zones read more at. Special economic zone and their role and impact on the. Special economic zones as an instrument of economic development. Sezs are zones intended to facilitate rapid economic growth by leveraging tax incentives to attract foreign dollars and technological advancement. A special economic zone sez is an area in which the business and trade laws are different from the rest of the country.
Abstract ask three people to describe a special economic zone sez and three very different images may emerge. Special economic zones sezs have been successfully used as an industrial policy tool in many countries. The sez scheme introduced by the government of india in april 2000 has its genesis in the export processing zone epz scheme, which was introduced way back in 1965. Thus, ieat is assigned by the government to develop its industrial estates in sezs, which can be summarized into 2 phases.
Special economic zones sezs or industrial parks can be an effective instrument to promote industrialization if implemented properly in the right context, as shown in some of the emerging countries, particularly those in east asia. Efforts to create sezs in tanzania began in 2002, and were stepped up through the establishment of the export processing zone. The industrial estates are the fundamental facility for business operators in manufacturing and services, promoting the expansion on economic in special economic zones. With operational success, the role of the special economic zones has expanded from trade to investment technology, research and development, service, and training. The role of sezs in promoting industrial development global africa. Asean guidelines for special economic zones sezs development. There are several forms of sez depend on the establishing objectives. Special economic zones sezs geographically delimited areas within which. Impact of special economic zones on employment, poverty. The government of bangladesh is setting up 100 special economic zones sezs for creating 10 million jobs. Industrial estates, industrial clusters and special economic zones are the most used concepts in this regard.
The role of sezs in promoting industrial development. Special economic zones sezs concept has evolved across the globe and several developing countries have adopted this policy for setup of industrial zones that focus on exports and helps in generating economic opportunity and able to attract foreign. The passing of the special economic zones act the act, which effectively repealed the jamaica export free zones act, represented a major initiative. Special economic zone sez is a specifically delineated dutyfree enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. A special economic zone sez refers to designated areas in countries with special economic regulations that differ from other areas in the same country. The world is awash with freetrade zones and their offshoots. Historical development of free zones in honduras 48 performance 49 key success factors 54 challenges for the future 61 conclusion 65 notes 67 references 68. In viet nam, sezs play a key role in the governments fdi attraction strategy. However the success in promoting the trade differs. The role of special economic zones in nationwide progress. The function of special economic zones in the modernization. Rightmost photo shows meas sophal who works in a garment factory at the special economic zone in sihanoukville, cambodia photo by pring. Special economic zone sez, any of several localities in which foreign and domestic trade and investment are conducted without the authorization of the chinese central government in beijing. The jseza was established in 2016 under the special economic zones act.
Pdf the role and effectiveness of special economic zones. Special economic zones have their own management system. Russian federation, technologyoriented zones also play an important role. Special economic zone chinese economics britannica. South africa is investing in special economic zones sezs as a major plank of its. The china model, as it has been dubbed, is being emulated by other developing countries. One of the most well known sez is shenzhen special economic zone which established in 1980 2, 3. What are the roles and impact of special economic zone in. Special economic zone what is a sez indian economy. The jamaica special economic zones authority jseza is the agency of the government of jamaica responsible for facilitating the development of and promotion investments in special economic zones sezs in jamaica.
The special economic zones sezs can be an effective instrument to promote industrialization if implemented properly in the right context, as shown in some of the emerging countries, particularly those in east asia. The role of special economic zones in manufacturing development. Development of industrial park on pakistan steel mills land at port qasim near karachi. The sez will be governed by the special economic zones authority authority whose roles shall be. Special economic zone or sez refers to a totally commercial area specially established for the promotion foreign trade. Especially in the usa, the pioneer of sez has 257 areas of ftz and 545 areas of ftz subzone 4, 5. A proposal for a study on the role of sezs in strengthening competitiveness of gms economic corridors was endorsed at. The routledge handbook of industry and development focuses on the role of economic zones in promoting growth in subsaharan africa. Special economic zones as an engine of regional economic. Designing economic zones for effective investment promotion. A special economic zone sez is a geographical region that has economic laws more liberal than a countrys typical economic laws. What is special economic zones sez explain role of special economic zones sez in international business. The first person may describe a fencedin industrial estate in a developing country, populated by footloose multinational corporations mncs enjoying tax breaks, with laborers in garment factories working in substandard conditions.
In some cases sez are fully exempted from national laws regarding corporate income taxes, labour laws and quotas and other restrictive laws. South african special economic and industrial development zones the port of durban and the southern bloemfonteincape town route, the sez is a natural choice for investors seeking a costeffective location to service domestic and export markets. Located on the mainland, the government of china grants its special economic zones sezs more free market oriented economic policies and flexible governmental measures, compared to the planned economy elsewhere. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. Usually the goal is flourishment in foreign investment. Special economic zones sezs, are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements that may include laws and systems that are often different from those that apply in the rest of the country. Special economic zone policies provided to companies located in the specified zones for trade have both propelled growth in china and made the country extremely competitive internationally.
Pdf a study on special economic zones sez in tamilnadu. Given its geographic location, special economic zones offer a number of. First, an industrial estate is an area consisting of many factories and business in single locality but it is relatively small area than special economic zone with limited liberal economic policies. The role of special economic zones in manufacturing. In order words, sez is a geographical region that has economic laws different from a countrys typical economic laws. Theoretical framework the theoretical debate over t he concept and role of sezs in economic development, in addition to their gender, labor and environmental implications, can be grouped under two major types of analysis, as argued by farole. Promoting and marketing sezs to potential developers. More and more countries have begun to implement this instrument. The draft sez rules were widely discussed and put on the website of the department of commerce offering suggestionscomments. The role of chinas overseas special economic zones in. Sezs have played a significant role in economic enrichment of developing countries, by improving international business.
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